A graph G is P4-sparse if no set of five vertices in G induces more than one chordless path of length three. P4-sparse graphs generalize both the class of cographs and the class of P4-reducible graphs. The authors give several characterizations for P4-sparse graphs and show that they can be constructed from single-vertex graphs by a finite sequence of operations. The present characterization implies that the P4-sparse graphs admit a tree representation unique up to isomorphism. Furthermore, this tree representation can be obtained in polynomial time.